ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The primary reason people don’t budget is because they lack the behavior to stick to a budget. Your monthly rent payment is an example of a variable expense. What is the envelope system? It’s a method of budgeting that uses envelopes labeled with specific budget categories for your cash.

Detailed explanation-2: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

Detailed explanation-3: -You’ll Struggle To Meet Financial Goals A budget is the first step to putting aside money toward the important things you need to save for. Without those guidelines, you might not discover where you’re spending money and may even be saving it in ways that aren’t optimal.

Detailed explanation-4: -Budgeting ensures you’re not spending more than you’re making, allowing you to plan for short-and long-term expenses. It’s an easy, helpful way for people with all types of income and expenses to keep their finances in order.

Detailed explanation-5: -8 Reasons Regular People Hate Budgets. We don’t want to be held accountable. We are living in denial. We don’t know how to get started. We think it will be too much work. We don’t make enough to need a budget. We tried budgeting before, and it didn’t work. We always get in a fight when we talk about money. More items •14-Oct-2020